Minimum Wages in Competitive Labor Markets

We've all had minimum wage jobs, therefore we've all wished there was a higher minimum wage! In this lesson we'll analyze the impact that a minimum wage has on both a competitive labor market and on an individual firm hiring workers in that market.

[oliviaharris]

This video is absolutely amazing!!! Really improved my understanding on this topic.

[riullysdantas]

Very easy to follow when there are graphs, thank you!

[RaqibZaman]

What software are you using to teach the lessons? I could use something like that for biology. Nice video, by the way.

[cye]

Jocab Clifford failed me this time as we need to buy his review packet, your videos are great❤

[ugyennima]

Can you show how a Perfectly Competitive Labor Market after the introduction of minimum wage rate can go back to Equilibrium, or is it even possible.

[Caesark]

I think this oversimplifies the effects of minimum wage. All, or at least most, workers are consumers. If workers have more money to spend, this can potentially offset the increase in costs for businesses by allowing these businesses to make more money on increased sales(although, that depends on various markets). Also, it ignores the psychology of wages too. Workers tend to work more efficiently if they are paid higher wages, especially if they feel that THEY are receiving a fair wage(not a fair wage as determined by the employer). Since workers who are more productive as a result of higher wages, they will need to work less(this is more useful for industrial or industrial-like jobs) and they will treat customers better(this is useful for retail and other low-skill service jobs). As a result, they will either need to work fewer hours or produce more in sales. Another thing would be is there is usually lower turnover and higher employee retention when it comes to higher levels of compensation/wages. As a result, there would be lower turnover costs too

[sidraramzan]

Can you make vedio short run and long run on hiring Labor

[kiarapillay]

What happens when minimum wage is lower than the equilibrium?

[kaikewooziee]

You can't possibly type that fast...